alberta minimum wage decrease

The following employees are exempt from minimum wage standards: Section 138(1) (f) of the Employment Standards Code empowers the Lieutenant Governor in Council to make regulations respecting minimum wages. Well, Alberta Venture Magazine used to publish a list of the 250 largest Alberta companies. For domestic employees who live in their employer’s homes:  $2,848 per month. And that might seems like a lot, especially if you run a small outfit with a tiny profit margin. Even if we bumped up minimum wage tomorrow by another dollar, more than 85% of workers would be unaffected by the increase. This means that these companies collectively received, on average, $3.5 billion more in revenue each year than they paid out in expenses. Also, increases in the minimum wage will actually redistribute income among poor families, where some are given higher wages and others are put out of work. However, there will be increases in four different stages coming between April 1, 2020 and October 1, 2021.. First, the rate will go up to to $11.65 on April 1, 2020. This increase will raise wages for approximately 254,000 workers across the province of Alberta. And while you’re trying to determine what is driving inflation, keep in mind this table, taken from a report published by the Parkland Institute in 2018. What about the $31.3 billion for the 250 companies in 2014? Minimum wage increase in Alberta Alberta’s lowest pay permitted by law has expanded each year since 2015, turning into the most noteworthy in the nation when it came to $15/hour last October. This wage increase is the final stage of a plan set out by the NDP in 2015 promising to raise the minimum wage from the previous rate of $10.20 per hour. 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As part of a plan to increase Alberta’s minimum wage to … In 2013, 39.8% of minimum wage workers were between the ages of 15 and 19; in 1997, it was 36%. Well, as of June 2019, only 12.5% of workers made $15 an hour or less. See Payment of earnings for more information. This new rate applies to the first 28 hours worked in a week when school is in session. On Monday, 26,000 people earning minimum wage in Alberta will start seeing a slight boost in their paycheques. But before we get into the data around that, there are a few things to remember. For example, a student who worked 30 hours in a week can be paid as low as $13/hour for the first 28 hours, but must be paid no less than $15/hour for the 2 additional hours they worked. A little over a year ago, the Alberta government announced that they were assembling an expert panel to assess the provincial minimum wage. On Oct. 1, 2018, the Alberta minimum wage will reach $15 an hour, a 47-per-cent increase over four years. Casual babysitting isn’t considered domestic employment. My pronouns are he/him, and I’m queer. Also, notice 2002 on the CPI chart? The CPI increase in 1998, however, was only the 21st highest increase, and the 2018 increase was the 13th highest. A year earlier, when the minimum wage was $13.60, the percentage making minimum wage was 6.4%. Now let’s look at inflation. Inflation appears to occur regardless of whether minimum wage increases. Between May 2015 and April 2019, when the NDP was the governing party in Alberta, the minimum wage increased from $10.20 to $15.00, or $4.80, the largest increase over a 4-year timeframe. There simply is no indication that increasing minimum wage leads to inflation—well, at least not in Alberta during the last 40-years. The differential wage rate for liquor servers will be phased out completely in 2016. There is a set of employees that are exempt from the $15 rate, and instead entitled to a minimum weekly or monthly amount. Disclaimer: In the event of any discrepancy between this information and Alberta Employment Standards legislation, the legislation is considered correct. It shows the amount each of the 5 largest oil and gas companies in Alberta paid out to shareholders in dividends during a 9-year period starting in 2009. I live in Lethbridge with my spouse and 4 of our 6 children. But before you and I make that connection, let’s look at a few things. The vast majority of the workers in the province wouldn’t have received a wage increase with the increase to minimum wage. On 24 June 2020, the government updated their website to say that the panel had completed their work and that they were reviewing the report. And what we see is that there appears to be very little similar between the two graphs. The minimum wage in Prince Edward Island jumped $11 per hour from $10.75, the highest in Atlantic Canada, though there are no current plans for further minimum wage increases … Alberta employers must pay their employees at least the minimum wage. Employees entitled to the weekly minimum wage rate earn $598 per week. There were no other minimum wage increases during that time. Plus, in the years that saw the largest increases in minimum wage, the CPI didn’t reciprocate with their largest increases. These are two different datasets. One reports averages actual reported wages; the other simply divided total compensation paid out in Alberta over the year divided by total hours worked in Alberta over the year. Alberta’s minimum wage has increased every year since 2015, becoming the highest in the country when it reached $15/hour last October. That was the largest CPI increase during that 40-year period. Following the UCP government’s announcement Monday that the minimum wage for youth will drop to $13 per hour, Bob Barnetson, professor of labour relations at … Minister of Jobs, Skills, Training and Labour Lori Sigurdson outlined the changes on Monday morning. Restaurants Canada and the Canadian Federation of Independent Business have lobbied against the NDP minimum wage increase, which brought Alberta’s minimum wage up from $11.20 per hour in 2015 to $15 per hour in 2018, the highest in Canada. Clearly, the cost of buying stuff has gone up. The increase will be incremental, starting with a new minimum wage of $10 on September 30, 2021, and increasing $1 per hour each year until September 30, 2026. That’s only 5 companies though. Well, it comes from the people who paid for those products and services: the customers. They provided no information on when that report would be made public or what was in it. That was 3 years after one minimum wage increase and 3 years before the next minimum wage increase. Learn how your comment data is processed. This new rate applies to the first 28 hours worked in a week when school is in session. commission salesperson (other than a route salesperson) selling goods that will be delivered later, car, truck, recreational vehicle, or bus salesperson, heavy duty construction equipment or road construction equipment salesperson, residential home salesperson employed by builder. what’s that story? Increasing minimum wage isn’t what drives inflation. Just for the one year. ” The average Alberta worker made $40.60 an hour in 2019 25 August 2020 ” CALGARY—Paycheques for Alberta’s hospitality workers will soon be under a microscope thanks to a new Alberta government panel looking at the effects of minimum wage increases … In total, they paid out $31.7 billion collectively, or an average of $3.5 billion per year. Sorry, your blog cannot share posts by email. That works out to an extra $244 every 4 weeks. For example, CPI increased every year over the last 40 years, except in 2012, when it was flat, and 2001, when it actually decreased. A company pays dividends to its shareholders out of its profits. To start, the last time the minimum wage increased in Alberta was in 2018, when it went up $1.40, from $13.60 to $15.00. Students must be paid the general minimum wage of $15/hour for any hours exceeding 28 hours in one week. No matter how much a company pays out in wages—whether that’s minimum wage or otherwise—those wages will only ever make up a portion of the sticker price on the store shelf. The Employment Standards (Minimum Wage) Amendment Regulation introduces a job creation student wage. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. In fact, the average wage in Alberta in 2018 was between $25.37 and $30.56 an hour (depending on whether you belonged to a union), basically double that of the minimum wage. Put another way, these companies each charged, on average, $700 million more every year for their products and services than it cost them to produce those products and services. Yet CPI increased every one of those years. on In 40 years, minimum wage never once drove up inflation in Alberta. If an employee’s regular wage is greater than the minimum wage, the employer may pay them for less than 3 hours of work at this higher rate. On April 1, Alberta's minimum wage increased from $8 to $8.40 per hour. Overtime rules still apply. And if both the cost of living and minimum wage increased, it’s easy for some people to make the connection that one must have caused the other. The previous NDP government raised the minimum wage in Alberta from $10.20 per hour to $15 over a 3-year period (2015-2018). It looks like the government has decided to go with the latter as they raise the minimum wage by $1/hr on October 1, 2016, again in October of 2017 by an additional $1.40/hr, and one final time in October of 2018 by another $1.40/hr. The following minimum wage rates are set out in the Employment Standards Regulation: Salespersons (including land agents and certain professionals), Domestic employees (living in their employer’s home). First, the minimum wage increased by 417% during this 40-year period. The job creation student wage applies to any student under 18 who attends school up to grade 12, post-secondary or vocational school. This increase is now the highest minimum wage in the country. Writing and researching politics and social issues. The minimum wage for students under 18 is $13/hour as of June 26, 2019. In 1998 and 2018, for example, minimum wage increased by $1.40, the largest increases in the chart. Most companies wouldn’t need to pay their employees more just because of a bump in minimum wage. Kenney says the United Conservatives would roll back Alberta's $15-an-hour minimum wage to $13 an hour for those 17 or younger. The job creation student wage only applies to students enrolled in an educational institution and does not apply to youth who are out of school. Take a look at the period between the minimum wage increase in 1986 and the increase in 1998. If an employee is required to work a split shift and there’s more than a 1-hour break between the 2 segments of the shift, the employee must be paid the minimum compensation described above for each segment of their shift. Who the job creation student wage applies to: Information on the job creation student wage is available for employers and students. Oct. 1, 2016: $12.20 per hour. Restrictions apply. Profit is built into the price tag of every product and service a company sells. The minimum wage for students under 18 is $13/hour as of June 26, 2019. Alberta increased minimum wage rates in 2018 to $15.00 per hour for a few reasons; the government hoped a higher wage would reduce poverty, lessen the burden on social support programs, improve the quality of life for Alberta workers, and improve employee satisfaction. And here’s what the minimum wage looks like during the same period. There are a number of problems with this campaign promise that is now becoming policy. Statistics Canada notes that "youth, women and persons with a low level of education were the groups most likely to be paid at minimum wage." Also: This section doesn’t apply to employees who are entitled to a weekly minimum wage, because no daily record of hours is required to be maintained. Post was not sent - check your email addresses! This increase will be delayed one year for employers employing 25 or fewer employees, from January 1, 2018, to January 1, 2023. If the meeting or training occurs on an employee’s regularly scheduled day off, the employee must be paid at least the minimum wage and overtime if applicable. A domestic employee is a person employed to work in the employer’s residence, for the care, comfort and convenience of members of that residence. From January 1, 2017, to January 1, 2022, the minimum wage will increase for employers employing 26 or more employees. Iff you add up the net income for all those companies, it comes to $31.3 billion. For domestic employees who don’t live in their employer’s home:  $15 per hour. Liquor server rate of $10.70 per hour is … CPI increased at a only a third of the rate that minimum wage did. The current general minimum wage applies to all employees, with the exception of students under 18. As of October 1st, the Alberta's minimum wage increase will finally come into effect, bumping the minimum wages from $13.60 to $15 per hour. My politics are radically left. And I found no connection between the two. Minimum wage, on the other hand, sat dormant in over half of those years. Alberta Minimum Wage History Alberta’s minimum wage over the years are as follows: Students must be paid the general minimum wage of $15/hour for any hours exceeding 28 hours in one week. #heyfellowworkers #minimumwage #workersrights #worker #money. The new job creation student wage of $13/hour will apply to all regular hours worked when school is not in session, such as during spring break, Christmas break or during the summer vacation period. Contact Employment Standards or sign up for updates, Mandatory measures in effect provincewide, Information on the job creation student wage. That might seems like a lot, especially if you run alberta minimum wage decrease small outfit with tiny! New $ 13/hour as of June 26, 2019 need to pay students more this... Look at the University of Athabasca, working on my second undergrad degree exceeding 28 hours worked in week... 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